Coulson v. Lake LBJ Municipal Utility District

781 S.W.2d 594, 1989 WL 150714
CourtTexas Supreme Court
DecidedJanuary 24, 1990
DocketC-7655
StatusPublished
Cited by22 cases

This text of 781 S.W.2d 594 (Coulson v. Lake LBJ Municipal Utility District) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coulson v. Lake LBJ Municipal Utility District, 781 S.W.2d 594, 1989 WL 150714 (Tex. 1990).

Opinion

OPINION ON MOTION FOR REHEARING

PHILLIPS, Chief Justice.

The motions for rehearing are overruled. We, however, withdraw our prior opinion and judgment of June 7, 1989, and substitute the following.

This is a contract action. The principal issue in this appeal is whether a jury question inquiring about the sufficiency of the plaintiff’s performance included a comment on the weight of the evidence which tended to induce the jury to answer the issue in plaintiff’s favor. The court of appeals held that the issue erroneously commented on the weight of the evidence by combining an uneontested evidentiary issue with the ultimate substantive issue of performance. The court of appeals accordingly reversed *595 the judgment of the trial court and remanded the cause for new trial. 771 S.W.2d 145. * Because we do not agree that the jury question incorporated a harmful comment on the weight of the evidence, we reverse the judgment of the court of appeals; however, we remand the cause to that court because there remains for determination a point of error which challenges the factual sufficiency of the evidence supporting the jury’s answer to this same question.

In 1971, Lake LBJ Municipal Utility District, a conservation and reclamation district created by the Texas Water Commission, contracted with Coulson and Associates Engineers, Inc. for engineering services related to proposed water, sewer and drainage facilities for a development known as Horseshoe Bay. In 1973 the engineer submitted plans for the utilities in Horseshoe Bay to the District’s Board of Directors. Thereafter bonds were approved and sold, contracts let and construction commenced. Under the terms of the 1971 contract, the engineer’s entire fee was due at the time plans and specifications were completed and presented to the District’s Board of Directors. The contract also provided that the engineer’s fee would be based on the costs of construction. The agreement indicated a preference for determining the engineer’s fee on the basis of competitive bids, but provided in the alternative that the engineer’s “estimates of reasonable competitive construction bid prices” might be used, if competitive bids were not obtained.

In 1973 the parties amended their contract and changed the date on which the engineer’s fee became due. This amendment allowed the District to postpone payment to the engineer until bonds were sold. If any of the District’s bonds failed to sell, however, the 1973 amendment obligated the District to pay the remainder of the engineer’s fee within five years of their approval under the following language:

All fees owed to ‘consulting engineer will become due and payable at the end of five (5) .years from the date bonds are approved by the Texas Water Rights Commission if said bonds or a portion thereof remain unsold.

In April 1979, the engineer was discharged by the District. At the time of his termination the engineer had not collected his full fee because bonds, which had been authorized by the Water Commission in September of 1974, remained unsold. Under the terms of the 1973 amendment just discussed, the engineer was not yet entitled to his full fee. Also subsequent to the last bond approval in September of 1974, the engineer had prepared additional plans for a ten-inch wastewater effluent line, a 1.3 million gallon elevated tank and a microfloc water treatment plant. The engineer had not received payment for these projects because they had not been incorporated into a bond issue prior to his termination.

The engineer billed the District for his fee after it matured in September 1979, but the District refused to pay. Coulson and Associates Engineers, Inc., which by this time had changed its name to CAE, Inc., assigned its claims against the District to Bennett Coulson, who filed suit. The District filed an answer and a counterclaim against CAE, both of which alleged that the engineer had failed to meet a standard of reasonable engineering practice in the preparation of the plans and specifications for the District.

All claims were tried to a jury who returned a verdict for Coulson on his contract claim and against the District on its negligence/malpractice counterclaim. The trial court rendered judgment for Coulson and the District appealed.

In its first opinion, the court of appeals reversed the judgment of the trial court and remanded the cause for new trial holding that Issue 1, the contractual performance issue, was erroneous because it failed to incorporate an implied standard of care; i.e. that the engineer prepared the plans in *596 a good and workmanlike manner. Coulson I, 692 S.W.2d 897 (Tex.App.—Austin 1985), rev’d and remanded, 734 S.W.2d 649 (Tex.1987). The court of appeals further held it was the burden of Coulson under his contract claim to establish performance in a good and workmanlike manner and simultaneously the burden of the District under its negligence/malpractice claim to establish that the plans and specifications were not prepared in a good and workmanlike manner.

We reversed the judgment of the court of appeals holding that the contract and negligence issues submitted by the trial court “properly placed the respective burdens and fairly submitted the respective claims of Coulson and the District.” Coulson I, 734 S.W.2d at 652. We, however, remanded the cause to the court of appeals to consider the remaining points of error it had not addressed because of its erroneous conclusion on the parties’ respective burdens of proof.

This, then is the second appeal of the cause to this court and again the court of appeals has found Issue 1, the contractual performance issue, deficient. That issue provides:

Do you find from a preponderance of the evidence that during the time in question Coulson and Associates Engineers, Inc., furnished the Lake LBJ Municipal Utility District with sufficient plans and specifications for construction of a water system, a sanitary sewer system and drainage for the needs of such District, and to secure approvals from appropriate governmental agencies, under the circumstances then existing?
Answer “Yes” or “No.”
ANSWER: Yes.

The court of appeals now holds that this question erroneously comments on the weight of the evidence by combining an established fact, whether the plans and specifications were sufficient to secure governmental approval, with a contested issue, whether the plans and specifications were sufficient to meet the District’s needs.

Coulson argues that there is no basis for the court of appeals’ conclusion that governmental approval of all engineering plans and specifications was an uncontested fact. We agree. In fact, the court of appeals admits as much when it observes that certain plans were not submitted for approval prior to the engineer’s termination.

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Bluebook (online)
781 S.W.2d 594, 1989 WL 150714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coulson-v-lake-lbj-municipal-utility-district-tex-1990.